Bookkeeping For Small Business

By Author: ExperTax Consulting
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Bookkeeping for Small Business

What is bookkeeping?
Bookkeeping involves recording and classifying all the financial transactions of your business. It’s keeping track of what your business spends and what your business receives.
These tasks used to be managed using books and ledgers, hence the name ‘bookkeeping’. Originally the transactions would be recorded in daybooks, cashbooks, or journals and then transferred to a ledger.
Bookkeeping software has now pretty much replaced the need for physical books.

Why do small businesses need bookkeeping?
An accurate, well-kept set of books is a great start to running a successful business. Here's why:
You can check that you're making more money than you're spending. You'll have reliable financial information for planning and budgeting decisions. You can see if a cash crunch is coming and take steps to avoid it, by watching when you need to pay suppliers, and when you can expect payment from customers.